SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS
NOTE - 1
1 BASIS OF PREPARATION_
The Financial statement have been on historical cost basis and on the accounting principles of
going concern in accordance with generally accepted accounting principles comprising of the
mandatory Accounting Standards referred to in Section 133 of The Companies Act, 2013 read with
rule 7 of the Companies (Accounts) Rules, 2014 and Guidance Notes issued by Institute of Char¬
tered Accountants of India.
All the assets and liabilities have been classified as current and Non-current as per the Company's
operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on
the nature of products and time between acquisition of assets for processing and realization in
cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the
purpose of current and non-current classification of assets and liabilities
2 USE OF ESTIMATES
The preparation of Financial statement of the company is on conformity with Indian Generally
Accepted Accounting principles require management to make estimates that affect the reported
amount of assets and liabilities at the date of the Financial Statement and the reported amounts
revenue and expenses, during the reporting period, although these estimates are based on man¬
agement's best knowledge of current events and actions, actual results may ultimately differ from
these estimates, which are recognized in the period in which the results are known/materialized.
3 FIXED ASSETS
Fixed assets are stated at cost. Cost inclusive taxes, duties, freight and other incidental expenses
related to acquisition, improvements and installation of the assets.
4 DEPRECIATION
(i) Fixed Assets are shown at historical cost net of recoverable taxes inclusive of incidental expenses
less accumulated depreciation.
(ii) Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated
depreciation.
(iii) Depreciation on fixed assets is provided on W.D.V. basis at the rates precribed under Companies
Act, 2013.
(iv) Depreciation on fixed assets sold during the year, is provided on pro-rata basis with reference
to the date of addition/deletion.
5 INVENTORIES_
No Inventories, Being Service Industry.
6 INVESTMENTS
Investments are stated at cost increased by interest due including all the incidental financial
charges directly attributable to the cost of acquisition.
7 REVENUE RECOGNITION_
(i) Commission is accounted for as and when the company's right to receive the same is estab¬
lished.
(ii) Income from investment is recognized, as and when received.
8 BORROWING COST
Interest and other borrowing costs are recognised in the statement of profit and loss except
borrowing cost that are directly attributable to the acquisition or construction of qualifying assets
are capitalized as part of the cost of such assets until the asset is first put to use, when substantially
all the activities necessary to prepare such Inventory for its intended sale are complete.
9 TAXATION
Income tax expense will comprise of current tax and deferred charge or credit. Current tax is
determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax
should be recognised to that extent only, subject to consideration of prudence in respect of de¬
ferred tax assets, or timing differences, being the differences between the taxable income and
accounting income that originate in one year and are capable of reversal in one or more subse¬
quent years, having tax consequences.
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